N20bn Sukuk: TAJBank records 185.5% oversubscription

Non-interest bank, TAJBank Limited, has recorded a 185.15 per cent oversubscription in its latest N20bn Mudarabah Sukuk bond offer.

In a statement on Thursday, the bank said the figure was based on data released by investment market authorities on the bond’s performance.

The data showed that the debt instrument, with an annual profit rate of 20.5 per cent, recorded an allotment of N57.03bn, representing 185.15 per cent oversubscription, a reflection of growing investor confidence in the bank.

Commenting on the performance of the offer, TAJBank’s Founder and Managing Director, Mr. Hamid Joda, described the N20bn Mudarabah Sukuk bond, which represents the second tranche of the bank’s N100bn Sukuk programme, as impressive given prevailing micro and macroeconomic conditions affecting the real incomes of Nigerians.

Let me say that this outstanding performance of the Sukuk bond is a clear demonstration that the bank is enjoying growing investor confidence. This can only be attributed to the quality of innovative products and services, as well as the value addition TAJBank continues to deliver in the non-interest banking subsector, especially when analysed within the context of current realities in the debt instrument market,” Joda said.

He added, “I want to thank the board, management and staff of the bank, the regulatory authorities, and the investors for their contributions to the success of the bond issuance. I also assure them that TAJBank will continue to protect their interests to ensure a win-win experience for all stakeholders as we sustain our drive to remain the leading player in the nation’s non-interest banking subsector.”

Also speaking, the bank’s Co-Founder and Executive Director, Mr. Sherif Idi, said, “This investment feat clearly demonstrates investors’ trust in TAJBank, and we will continue to do our best to exceed their expectations through world-class products and services. As always, our focus remains on our customers and investors.”

Analysts in the investment market believe that, following the outstanding success of TAJBank’s latest N20bn Mudarabah Sukuk bond, more investors, businesses, and customers will be encouraged to engage with the bank to explore opportunities in its innovative products and attractive returns.

Since debuting in Nigeria’s non-interest banking space about five years ago, TAJBank has gained recognition for its adherence to global best practices in Islamic finance. The bank has received several awards, including the Global Islamic Finance Award 2023 for ‘Best Sukuk Deal of the Year’. It also won BusinessDay’s ‘Islamic Bank of the Year’ award in 2021, 2022, and 2023, and earlier clinched Leadership Newspaper’s ‘Bank of the Year’ award in 2020, among other accolades.